Oil prices rise as Iran and US tensions heighten risks to nearly 27% of global energy supply routes.
West Texas Intermediate crude futures climbed over 3% to $88.60, extending a five-day rally amid heightened Middle East supply risks. Iran’s closure of the Strait of Hormuz and Houthi blockades in the Red Sea have disrupted key energy transit routes, affecting nearly 27% of global oil flows.
Prices advanced as diplomatic efforts between the US and Iran showed no progress, with both sides issuing escalatory threats. Iran’s Foreign Minister warned of a decisive response to any US strikes on its infrastructure, while the US signaled potential retaliatory actions.
Investors also awaited the European Central Bank’s policy decision, expected to hold rates steady after a 25 basis points hike in June.